Analysis on Legal Issues of Inter-Korean Trade: From the WTO Perspective

Abstract

Abstract Analysis on Legal Issues of Inter-Korean Trade: From the WTO Perspective Jeongjoon James Park International Commerce Major, International Studies Graduate School of International Studies, Seoul National University South Korea, one of the most vital players in international trade, falls into a dilemma when the issue of inter-Korean trade is raised. Due to the uniqueness of the relationship, the current privileges South and North Korea share are legitimate internally, but externally, are against the WTO laws, particularly the Most Favoured Nation (MFN) Treatment and also possibly the Subsidy measures. This not only increases tension between South Korea and her trading partners, but also potentially defames the true purpose of inter-Korean trade that is to build peace and prosperity on the Korean peninsula and further onto East Asia. This research, therefore, first attempts to provide the overall understanding of inter-Korean trade from the definition, scope, and implication to its history. Because of the specificity the inter-Korean trade holds, the solid understanding of the trade is expected to contribute to better and calm judgment of the legal controversies. After all, the thesis brings the controversial issues of both MFN Treatment and WTO Subsidy, to assess whether or not there is any risk that contemporary South Korean treatment towards North Korea could possibly fall into illegal actions. Further, the research tries to suggest some legally-possible solutions exempting any political and diplomatic perspectives. In the end, the possibility of North Korean accession to the WTO is given a closer look. By dealing with some case studies of the accession experiences of some countries that have very similar economic and political conditions to North Korea, it is aimed to discover what is expected from North Korea before, during and after the WTO accession process. Keywords: Inter-Korean trade, MFN, WTO Subsidy, South/North Korean FTA, Outward processing, Kaesong Industrial Complex, WTO Accession of North Korea Student Number: 2011-23955